{"id":355,"date":"2026-01-05T12:00:00","date_gmt":"2026-01-05T12:00:00","guid":{"rendered":"https:\/\/california.shuster.info\/?p=355"},"modified":"2026-01-05T12:00:00","modified_gmt":"2026-01-05T12:00:00","slug":"sanchez-gm-cd-cal-remands-volt-lease-mileage-offset-mmwa","status":"publish","type":"post","link":"https:\/\/california.shuster.info\/?p=355","title":{"rendered":"Sanchez v. General Motors LLC \u2014 C.D. Cal. Remands Lemon-Law Suit on Volt Lease Where Mileage Offset Reduces Damages Below MMWA Threshold"},"content":{"rendered":"
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Case<\/dt>\n
Sanchez v. General Motors LLC<\/dd>\n
Court<\/dt>\n
U.S. District Court \u2014 Central District of California<\/dd>\n
Date Decided<\/dt>\n
2026-01-05<\/dd>\n
Docket No.<\/dt>\n
2:25-cv-07548<\/dd>\n
Status<\/dt>\n
Unreported \/ Non-Citable<\/dd>\n
Topics<\/dt>\n
Removal jurisdiction; Magnuson-Moss Warranty Act $50,000 threshold; Song-Beverly Act mileage offset; civil penalties; lease-then-purchase damages calculation<\/dd>\n<\/dl>\n<\/div>\n

Background<\/h2>\n

Miguel Sanchez leased a 2019 Chevrolet Volt in February 2019 (when the odometer read 11 miles) and later purchased it under the lease’s buyout option. After warranty defects allegedly went unrepaired, he sued General Motors in Los Angeles Superior Court under California’s Song-Beverly Consumer Warranty Act, the federal Magnuson-Moss Warranty Act (MMWA), and related state statutes. GM removed the case to federal court on diversity grounds.<\/p>\n

Sanchez moved to remand, arguing GM could not establish either the $50,000 MMWA amount-in-controversy threshold or the $75,000 diversity threshold. The records showed Sanchez had paid $27,448.70 over the lease and $15,233.55 to buy the car out at the end of the lease \u2014 combined restitution of $42,682.25 before any offsets. The first repair attempt occurred when the odometer read 86,852, meaning Sanchez drove 86,841 miles before the first repair attempt.<\/p>\n

The Court’s Holding<\/h2>\n

Judge Stephen V. Wilson granted the motion to remand. The court applied the Song-Beverly Act’s statutory mileage-offset formula: the use-offset multiplier equals miles driven before the first repair (86,841) divided by 120,000, which produced a multiplier of approximately 0.724. Multiplied by the $42,682.25 in restitutionary damages, the mileage-offset deduction came to $30,888.08, leaving net actual damages of $11,794.17.<\/p>\n

On civil penalties, the court adhered to its prior rulings (Bastida v. Ford) declining to add Song-Beverly civil penalties to the amount-in-controversy when the complaint contains only conclusory allegations of willfulness. Plaintiff’s boilerplate willfulness allegation, with no supporting facts, was insufficient. On attorneys’ fees, GM’s suggested $5,000 estimate was inadequate; even if accepted, it would not bridge the gap to the $50,000 MMWA threshold (and certainly not the $75,000 diversity threshold). The court noted attorneys’ fees would have to exceed $38,215 just to meet the MMWA threshold, with no evidence supporting that amount. The case was remanded to Los Angeles Superior Court.<\/p>\n

Key Takeaways<\/h2>\n